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The Workforce Behind the Workforce: Why Child Care Matters to Northern Michigan’s Economy

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Northern Michigan’s economy depends on more than the businesses we see. It relies on the jobs they create. Behind each job filled and every growing business is a critical piece of workforce infrastructure: reliable child care.

Child care is necessary for many people to participate fully in the workforce. When families cannot secure dependable care, parents may reduce work hours, decline opportunities, or leave the workforce entirely. For employers, the impact appears as staffing instability, absenteeism, and lost productivity.

Recent assessments across multiple Northern Michigan industries highlight how closely child care and economic vitality are connected. Challenges related to affordability, availability, scheduling, and location influence whether employees can show up and remain in their jobs.

At the center of the issue is the early childhood workforce itself. High-quality child care depends on skilled educators who guide children through critical developmental years. Yet compensation for these professionals has historically lagged behind comparable fields. Regional workforce surveys show salary and benefits are among the strongest factors influencing whether educators remain in the profession or seek work elsewhere.

Although many providers remain in the profession out of deep commitment to the children and families they serve, persistent wage gaps and limited benefits continue to strain the system. Programs struggle to hire and retain staff, classrooms close, waitlists grow, and families have fewer options.

Communities across Michigan are beginning to respond by aligning compensation with the true cost of providing quality care. Living-wage salary scales tied to regional data and clearer career pathways for early childhood educators are showing promise in improving recruitment, stabilizing retention, and expanding capacity.  North Central Michigan College advances this work through its Child Care Initiative and on-campus Early Learning Center, which models a true-cost approach while creating training pathways for early childhood educators and expanding access to reliable, high-quality childcare for working families.

Meanwhile, shared investment models such as Michigan’s Tri-Share and Care-Share programs and Child Development and Care (CDC) scholarships are helping address the affordability challenge by distributing care costs among families, employers, and public support.

Strong child care systems support far more than individual families. They strengthen the workforce employers depend on, provide children with stable early learning environments, and support the long-term vitality of our regional economy.

Child care may operate quietly in the background, but it is an essential piece of economic infrastructure. It is the workforce behind the workforce — and one of the foundations of a thriving Northern Michigan.

Child Care and the Northern Michigan Workforce

A Workforce Issue:
Access to reliable child care affects employee retention, attendance, and productivity.

Educators Are Essential:
High-quality child care depends on skilled educators who guide children through critical early years.

Pay And Retention:
Compensation for early childhood educators lags behind comparable professions, contributing to high turnover and making it difficult for providers to hire and retain staff.

Capacity Constraints:
When staffing is limited, classrooms close, waitlists grow, and families have fewer options.

The Affordability Paradox:
Quality child care costs more to provide than most families can reasonably pay. A true-cost model helps communities understand the real cost of care while exploring ways to support both educators and families.

Why It Matters:
A stable child care system allows parents to work, helps employers retain staff, and supports the long-term strength of Northern Michigan’s economy.

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